Sunland Company has the following account balances: Sales Revenue $226,700, Sales Discounts $4,410, Cost of Goods Sold $129,600, and Inventory $39,200. Prepare the entries to record the closing of these items to Income Summary. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Business

Kyle Crane

18 April, 04:30

Sunland Company has the following account balances: Sales Revenue $226,700, Sales Discounts $4,410, Cost of Goods Sold $129,600, and Inventory $39,200. Prepare the entries to record the closing of these items to Income Summary. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Joseph Blackburn · Answer 1

Answer and Explanation:

The Journal entry is shown below:-

1. Sales revenue Dr, $226,700

To Income revenue $226,700

(Being close accounts with credit income balances is recorded)

2. Income revenue Dr, $134,010

To Sales discount $4,410

To Cost of goods sold $129,600

(Being close accounts with debit expenses account is recorded)